Page 81 - the latest homebuying guide

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Loan Estimate
Form provided by the lender within three business days of applying
for a loan. It shows information such as loan amount, interest rate,
closing costs, loan application fees, taxes, insurance, and any special
features.

Mortgage Broker
A licensed individual or entity authorized to accept loan and process
applications on behalf of clients. Mortgage brokers usually have
access to multiple lenders with different rates, terms, and
qualification standards.

Offer & Counter-offer
A signed document outlining terms and price a buyer is prepared to
pay for a house. A counter offer happens when the seller rejects
the offer and submit another.

Origination Fee
Fees charged by a lender to cover processing costs

Points
Points represents a percentage of your loan where 1 point means
1 percent. Discount points are fees that you pay at closing to get a
lower interest rate. Lender credits are amounts given to you by the
lender to take care of closing costs, in exchange for a higher interest
rate.

Pre-approval
A status where the lender has decided to approve you for a certain
amount for up to 90 days. It’s always better to have this status
before you start looking at homes.

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